PEPE has retested short-term ascending support levels after the latest pullback.
Assess whether demand is accumulating at this critical level.
Pepe [PEPE] is currently trading in a critical area that could determine its short-term outlook. The memecoin’s performance over the past two weeks suggests that it is struggling to maintain the bullish momentum achieved in September.
But what if the bulls are able to mount a comeback, signaling a continuation of this momentum?
Although PEPE recently gave back its September gains, its short-term rebound bullish bias may still remain. The memecoin has just retested the short-term ascending support line associated with its September performance.
PEPE has gained $0.00000.935 in the past 24 hours and is trading at $2.63 at press time. This suggests that the short-term ascending trendline is still in play, hence the bullish reaction of the market to the retest.
The recent pullback has pushed PEPE down to the 50% RSI level. So far, the RSI indicator has signaled a potential turnaround and remains just above this area.
This reaffirms that the bullish momentum is still in play.
The above observations underscore the importance of the memecoin’s current position. If it can muster enough demand, there could be more upside.
On the other hand, if the bears mount a solid attack, coupled with lackluster demand, the price will most likely see more weakness.
Assessing the need for PEPE
The first stop is an assessment of whale activity, as they tend to have the greatest impact on price action. Large holder flow data shows that whale activity has declined since the beginning of October.
The latest data on October 9 showed that large holder addresses received 2.96 trillion PEPE, while 3.17 trillion PEPE flowed out.
The large holder outflow data shows slightly higher outflows. However, this may have changed in the past 24 hours, during which the price rose slightly.
On-chain transaction volume also indicates a slowdown in activity over the past three days. Sell volume is clearly dominant, which is consistent with the selling pressure observed over the same period.
However, the latest data shows that PEPE buying is slightly higher than selling.
Despite the above observations, we do not observe clear distinctions to indicate the direction in which the price may fluctuate.
Nonetheless, changes in volume, especially as the weekend approaches, may provide more definitive directionality. Therefore, it is advisable to keep a close eye on whale activity.
It should be emphasized that this article is for reference only and does not constitute investment advice.
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